Cyclobutenones constitute an appealing class of substrates in catalytic asymmetric transformations leading to diversely substituted enantioenriched four‐membered carbocycles, which are eliciting a growing interest in medicinal chemistry. Whilst several synthetically useful enantioselective conjugate addition reactions have been reported, the catalytic enantioselective reduction of the carbonyl group of simple cyclobutenones remains an elusive transformation. Herein, we disclose the discovery of a novel allylic reduction‐asymmetric transfer hydrogenation cascade, catalyzed by a Noyori‐Ikariya ruthenium complex, from readily available gem‐dichlorocyclobutenones, leading to 2‐chlorocyclobutenols with high optical purities, which can be engaged in postfunctionalization reactions enabling access to substituted four‐membered rings.